Try Quests to earn cryptoFlash Bounty: NFT Royalty Comparison
Study time: 2 minutes timeframe on this study will be since the beginning of 2021/09/01 . I choose Opensea, Looksrare وX2Y2 and Rarible platforms to investigate on them in this analysis.
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What Are NFT Royalties?
NFT royalties are payments that compensate original NFT creators for the use of their non-fungible tokens (NFTs). In business, royalties generally pay the creator a percentage of sales or profits. With NFTs, royalties are usually set by the owner during the minting process.
Royalties from NFTs give the original owner a percentage of the sale price each time the NFT creation is sold on a marketplace. The average NFT royalty typically ranges from 5-10%. In most NFT marketplaces, the creator can choose their royalty percentage and the payments are automatic upon each subsequent sale in the secondary market.
Tip: NFT creators can receive passive income through NFT royalties, which are perpetual, meaning that they continue indefinitely. Original creators can also choose to raise money for causes important to them. While not every NFT makes money for the owner, some of the top NFTs have earned millions from sales. source
Introduction
A non-fungible token (NFT) is a unique digital identifier that cannot be copied, substituted, or subdivided, that is recorded in a blockchain, and that is used to certify authenticity and ownership. The ownership of an NFT is recorded in the blockchain, and can be transferred by the owner, allowing NFTs to be sold and traded. NFTs can be created by anybody, and require few or no coding skills to create. NFTs typically contain references to digital files such as photos, videos, and audio. Because NFTs are uniquely identifiable assets, they differ from cryptocurrencies, which are fungible.
How Do NFT Royalties Work?
NFT royalties are automatic payments to the original NFT owner made on secondary sales of the owner/artist's creation. The NFT royalty is chosen by the original owner in the marketplace, or blockchain platform, during the minting process. The royalties are tracked on the blockchain.
NFT royalties come from secondary sales, which are sales that occur in the marketplace after the original sale. To use a stock market comparison, this is similar to stocks trading in the secondary market after first selling in an initial public offering, or IPO. source
What happened on May 1?
SALE VOLUME (532.6M) ROYALTY (25.41M) SALE TXNS (45.6K)
Conclusion :
Opeansea with ==1.1B USD== paid royalty fee is the ==king of NFT royalties==.
In the matters of sale transactions, ==Opensea== has more than ==93%== of sale transactions on Opensea is with royalty while Rarible owns ==82%== and ==Looksrare== has ==63%== of their transactions with royalty.
We saw positive ==correlation== between sales volume of NFTs and transactions with royalty fees.
Looksrare has the highest sales volume with $27 billion. (second place)
ETH and WETH are the most common token to use when paying royalties.